| | "Are you seriously saying that high insurance premiums will protect us from people with nukes? Really?"
Yes, I am. However, I'm speaking in the context of an anarcho-capitalist society - although it could work in a limited state society almost as well, where part of the job of the title registrar for your property would be to ensure that you were properly insured or bonded to cover whatever risks you created for your neighbors. Failure to demonstrate that in a timely manner could mean revocation of your title, on the assumption that you were passing on the costs to your neighbors, just like you will lose your car if you attempt to drive in California without insurance or equivalent bonding. You simply don't have the right to impose your risks on other people.
This would mean that instead of the typically somewhat arbitrary and politicized "zoning" - often real-estate interest driven - the objectively verifiable costs would remain with the property owner, who would either have to work out a deal with the neighbors up front - say for a noisy business that keeps people awake at night - or pay enough in premiums that the insurance carrier could still make a profit by providing insurance. The worry that someone might set up a fireworks factory next door in a suburban neighborhood without zoning would be mooted by the fact that the fireworks manufacturer would have to pay extraordinary premiums to cover the risk. It just wouldn't make business sense. They would be much better off safely surrounded by miles of desert in the boonies.
Conrad Shnieker http://www.athenalab.com/The_Supreme_Scientific_Method.htm#_Toc127049213, co-inventor of the scanning, tunneling array chip and one of the dozen or so researchers who developed the concept of nanotechnology in the '70's, introduced me to the idea of risk control as a means of preventing crime in general sometime in the early '80's at one of the monthly parties that Anthony L. Hargis used to put on at his gold depository in Costa Mesa, CA. (These parties were a kind of Mecca for local libertarian luminaries for several years.)
To establish a general context, the issue arose in a discussion with Conrad concerning the Fermi Paradox. Conrad pointed out that the capability for offensive force was increasing exponentially faster than for defensive force, and that this provided one plausible answer to Fermi. "Where the heck is everyone?" Easy - they all killed themselves off soon after developing our current level of technology. We discussed how someone using recombinent DNA could engineer a binary virus that could wipe out everyone with the wrong genetic signature - or, if we think about the ALF nut jobs, simply all humans. One example that occurred to me at the time was creating a hybrid of the common cold and ebola.
Since then, in recent years, a research lab in Africa announced that they had indeed created exactly that hybrid - for the purpose of trying to invent a vaccine for Ebola, of course, but still scary as hell. http://www.vetscite.org/publish/items/001415/index.html Meanwhile, doing recombinent DNA on the level necessary to do really bad stuff has dropped in cost to the point that millions of individuals throughout the world could afford to do it in their garage as I write.
Conrad then postulated that the only real defense against such attacks would be total surveillance. Since I knew that he was an anarcho-capitalist, I assumed that he did not mean by the state. He confirmed that and pointed out that the state would not be reliable enough. It suffers from the inefficiencies and vulnerabilities to corruption that any coercive monopoly is subject to. Who guards the guards? All it takes is one universal plague. No, you need something better than that if you want humanity to survive long term.
So, what was his anarchist solution? He assumed that everyone would have to get insurance on their property in order to maintain a valid title, I'm sure. And, the insurance companies would base their premiums on risk. If you decide to build your home next to a big river that floods occasionally - or below sea level in the path of hurricanes, then your premiums for flood insurance are going to be very high, so much so that most homeowners will forgoe them altogether, and hope that the Feds or someone will bail them out, which ain't gonna happen in either an objectivist limited state or under anarcho-capitalism.
But the insurance companies are in competition with each other as well. So naturally they will seek cost effective solutions to matching premiums to risk. One thing that Conrad suggested was that - as inplementation of his surveillance society - the insurance companies would offer rewards for catching people who, for whatever reason, were concealing hazards that would otherwise bump up the rates.
Thus, if the market were such that people attempted this kind of fraud frequently, then there would arrise a class of freelance bounty hunters, who would use all manner of devious tracking of resources, etc., to locate people to rat on. The bounty would be paid out of a default premium that you signed, as in, if I try to screw the insurance company and get caught, then I agree to pay some huge sum to compensate them for all the trouble it took to catch me. And, your regular premiums would go up, of course, reflecting your bad behavior.
Thus, keeping any kind of battlefield-strength offensive gear in your basement in the burbs would be rather expensive in insurance premiums - or penalties when you got caught concealing the fact - and for a nuke would be more than even a Bill Gates could afford.
In fact, nukes are rather easy to trace, and both the internal security agents of the insurance companies and the free-lance bounty hunter agencies would be keeping a rather close eye on anything remotely approaching nuclear or dirty bomb capability, the transport of materiel, the information passed on from the suppliers, who could be hit with a serious "aid and abet" premium for their part in irresponsibly selling fissionable material - and could also provide the info in order to get a cut in the bounty money.
I want to re-emphasize that this solution, while presented originally in the context of a proposed anarchist society, in which everything would be privatized, would also work in a limited state. Or, you can depend upon the competence of your local gendarmes - as in http://findarticles.com/p/articles/mi_qn4176/is_20071031/ai_n21075633 .
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